When you pass away, your loved ones may be left to deal with any debts and expenses you leave behind, like mortgage payments, student loans, funeral costs, medical debt, and more. This places a burden on those who matter most to you during a time of difficulty and grief. Luckily, final expense insurance can help.
Final expense insurance is a type of life insurance that can help cover end-of-life costs, alleviating the burden on your family during a difficult time. Let’s discuss the benefits of final expense insurance as well as the different types of debts and bills final expense insurance can cover.
Benefits of Final Expense Insurance
There are a variety of ways in which final expense insurance can provide much-needed financial support for your loved ones after you pass away. These include:
Coverage for End-of-Life Expenses: Final expense insurance is designed to cover end-of-life expenses, like burial or cremation costs, as well as other financial obligations like hospital bills or outstanding debts.
Easier Underwriting Process: Many final expense insurance policies are available without requiring a medical exam. This can make it easier for individuals with health concerns or pre-existing conditions to secure coverage.
Fixed Premiums: Final expense policies typically feature fixed premiums and a fixed coverage amount, offering predictability and stability for the policyholder and their beneficiaries.
Affordability: Final expense insurance policies often offer relatively affordable premiums, making it accessible for individuals who may not need a larger traditional life insurance policy but still want to ensure their end-of-life expenses are covered.
What costs does final expense insurance cover?
There’s a great degree of flexibility in the types of financial obligations that final expense insurance can be used for. How the death benefit of a final expense policy is used will vary by situation, but here are just a few of the costs it can cover:
Funeral Expenses: Final expense coverage is commonly used to help pay for funeral expenses, including ceremony, memorial, or cremation costs and the purchase of a burial plot, grave marker, or headstone.
Outstanding Debts and Bills: Final expense insurance can provide additional funds to cover any outstanding debts or bills left by the deceased, such as ongoing mortgage payments.
Medical Bills: If the policyholder passes away from an illness or health condition, it’s likely they’ll leave behind outstanding medical bills. Final expense insurance can help loved ones pay these remaining costs.
Day-to-Day Expenses: If the deceased contributed income to their household, final expense insurance can help replace that lost income and help surviving families continue to meet day-to-day expenses like groceries, household goods, children’s education, and more.
Interested in final expense insurance? Let SelectQuote help.
If you’re interested in final expense insurance, SelectQuote can help you find the right fit for your needs. We work with trusted, highly-rated carriers to provide you with a variety of coverage options. No matter your situation or priorities, our licensed insurance agents will work on your behalf to find your loved ones the coverage they need.
